Most Gulf markets in black on US rate-cut hopes | Reuters

Most Gulf markets in black on US rate-cut hopes | Reuters

Most stock markets in the Gulf ended higher on Thursday after benign U.S. consumer inflation data overnight reinforced bets that the Federal Reserve would start cutting interest rates next month.

The Fed's policy stance is particularly significant in the Gulf since monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions. Most regional currencies are pegged to the U.S. dollar.

Traders remain convinced that the Fed will reduce rates on Sept. 18 for the first time in 4-1/2 years, but are split on whether policymakers will opt for a super-sized 50 basis-point reduction. While inflation is slowing, signs it may remain sticky spurred a reduction of bets on a larger cut to 37.5% from about 50% a day earlier.

U.S. retail sales rose more than expected in July, which could help allay financial market fears of a sharp economic slowdown that were fanned by a jump in the unemployment rate.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.6%, with ACWA Power Co (2082.SE), opens new tab rising 2.1% and Middle East Pharmaceutical Industries (4016.SE), opens new tab up 2.4%.

The kingdom's annual inflation rate held at 1.5% in July, the same as the previous month, government data showed on Thursday, partly reflecting an increase in housing rents.

Dubai's main share index (.DFMGI), opens new tab added 0.1%, helped by a 1.7% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.1%.

The Qatari benchmark (.QSI), opens new tab finished 0.2% higher, with Qatar Gas Transport Nakilat (QGTS.QA), opens new tab advancing 3.2%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.2%, with Commercial International Bank (COMI.CA), opens new tab closing up 1.2%.

Egypt's unemployment rate fell to 6.5% in the second quarter of 2024 from 6.7% in the first quarter, statistics agency CAPMAS said on Thursday.

#Dubai’s Shuaa Capital cuts Q2 2024 net loss to $8mln

Dubai’s Shuaa Capital cuts Q2 2024 net loss to $8mln

Dubai-listed investment bank and asset manager Shuaa Capital cut its losses by more than half during the second quarter of the year.

Net loss attributable to shareholders of the company stood at AED 29.4 million ($8 million) in the quarter, down by around 66% from the AED 87.2 million net loss in the first quarter of 2024.

For the first half of the year, net loss reached AED 117 million, primarily due to non-cash impairments related to the company’s associate and investment in legacy assets, the firm said on Dubai Financial Market (DFM) on Wednesday.

Revenues for the first half, excluding one-off items, amounted to AED 50 million, down by AED 13 million from a year earlier.

Cost-to-income ratio was pegged at 103% in the first six months of the year, an improvement from the 111% on an adjusted basis in the previous year.

DP World's first-half profit more than halves amid Middle East tensions | Reuters

DP World's first-half profit more than halves amid Middle East tensions | Reuters

Dubai-owned DP World reported a 59% drop in first-half profit on Thursday as the ports and logistics company grappled with shipping disruptions in the Red Sea as tensions flare in the Middle East due to the ongoing Israel-Hamas war in Gaza.

Missile and drone attacks in the Red Sea since October by Yemen's Houthi militants, who say they are acting in solidarity with Palestinians in the Gaza war, have forced many ocean freight firms to re-route vessels away from the Suez Canal to around the Cape of Good Hope on the southern tip of Africa.

Analysts say Middle East ports like those in the Gulf have lost out on trans-shipment traffic as ships sail around Africa.

Overall profit attributable to DP World's owners was $265 million in the six months to June 30, down from $651 million a year earlier, the company said, adding that its operations had been "partially impacted" by Red Sea disruptions.

Revenue rose 3.3% to $9.34 billion, driven by the company's logistics as well as ports and terminals divisions, with consolidated container volumes up 3.7% on a like-for-like basis.

DP World, which manages ports from Britain to Peru, also operates warehousing and logistics parks. Revenue from the company's logistics business fell 2%, while marine services saw a half-year revenue decline of 4.1%.

In the Middle East, Africa and Europe, DP World recorded a 1.9% like-for-like decline in container volumes, while profit from the region fell 7%. The state-owned conglomerate said volumes rose at the flagship Jebel Ali port in Dubai, but it did not disclose volumes for other Middle East ports such as Jeddah.

The company's overall adjusted core profit fell by 4.3% to about $2.5 billion for the six months due to the crisis and investments to expand its logistics platform, but DP World said it expects an improved performance for the second half of the year.

Major Gulf markets gain on US interest rate cut hopes | Reuters

Major Gulf markets gain on US interest rate cut hopes | Reuters

Major stock markets in the Gulf rose in early trading on Thursday after benign U.S. consumer inflation data overnight reinforced bets that the Federal Reserve would start cutting interest rates next month.

Traders remain convinced that the Fed will reduce rates on Sept. 18 for the first time in 4-1/2 years, but are split on whether policymakers will opt for a super-sized 50 basis-point reduction. While inflation is slowing, signs it may remain sticky spurred a reduction of bets on a larger cut to 37.5% from about 50% a day earlier. FEDWATCH

A major macroeconomic test looms later on Thursday with the release of U.S. retail sales figures.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.6%, with Dr Sulaiman Al Habib Medical Services (4013.SE), opens new tab rising 4% and MBC Group (4072.SE), opens new tab advancing 7.5%.

Dubai's main share index (.DFMGI), opens new tab edged 0.3% higher, helped by a 2.7% rise in public parking operator Parkin Company (PARKIN.DU), opens new tab.
In Abu Dhabi, index (.FTFADGI), opens new tab added 0.2%.

The number of companies that set up bases in Abu Dhabi's financial centre ADGM increased by 31% in the first half of the year as the likes of Morgan Stanley joined a slew of other financial services firms moving to the oil-rich emirate.

The Qatari benchmark (.QSI), opens new tab was up 0.1%, with Qatar Gas Transport Nakilat (QGTS.QA), opens new tab rising 1.8%.